Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-T - Interactions between this Part and other areas of the income tax law: special rules for MEC groups  

How Subdivision 165-CD applies to MEC groups

SECTION 719-740   Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest  

719-740(1)    
For the purposes of Subdivision 165-CD , treat the *head company of a *MEC group as not having a relevant equity interest in a *loss company at a particular time if:

(a) the *top company of the group is a *widely held company at that time; and

(b) because of subsections 165-115X(2A) , (2B) and (2C) , the top company does not have a relevant equity interest under section 165-115X in the loss company at that time.

719-740(2)    
For the purposes of paragraph (1)(b), disregard the operation of subsection 701-1(1) (the single entity rule) in determining whether subsection 165-115X(2C) has the effect that the *top company has the relevant equity interest mentioned in that paragraph.

719-740(3)    
For the purposes of Subdivision 165-CD , treat the *head company of a *MEC group as not having a relevant debt interest in a *loss company at a particular time if:

(a) the *top company of the group is a *widely held company at that time; and

(b) because of subsections 165-115Y(3A) , (3B) and (3C) , the top company does not have a relevant debt interest under section 165-115Y in the loss company at that time.